"We're going to have a tough summer because people are beginning to drive now during tight supply," Bush said. "The American people have got to understand what happens elsewhere in the world affects the price of gasoline you pay here."

These are some of the first comments Bush has made about the recent spike in oil and gasoline prices, and some pundits believe that the President's remarks indicate that the GOP is worried that gas prices could be a political albatross in the 2006 elections.

Bush, however, continues to look at the demand side of the equation.

We've got a real problem when it comes to oil. We're addicted, and it's harmful for the economy, and it's harmful for our national security," he said. "The American people have got to understand what happens elsewhere in the world affects the price of gasoline you pay here."

Certainly the demand for oil in countries like China and India has contributed to the reduction in supplies. However, the President dodged the issue of recent saber-rattling with Iran as a contributory factor.

The President also avoided the issue that the major oil companies and cartels are reaping record profits.

"We're watching real carefully to make sure people are treated fairly," the president said, though failing to offer specifics on how the federal government is monitoring price-gouging.

The controversy over big oil profits became even more heated when it was announced last week that outgoing Exxon CEO Lee Raymond received a retirement package of over $400 million in December.

The saber rattling on Iran may have been significant, but oil prices have risen steadily since 9 /ll, a fact I point out at my blog, along with a chart that shows the steady rise. Can you believe oil prices were only at around $20.00 a barrel in September 2001? Bush's war in Iraq has been a major contributing factor and prices at the pump may finally serve to pound home the fact that this administration is incompetent and does not serve the interests of the American people.

Some interesting points, historymike and newsguy. Certainly Iraq has led to price increases, as have the other events you mentioned--not to mention the effect Katrina has had. While they have all played some role in making oil more expensive, I believe it has been the unrelenting demand for oil that has played the largest role in rising prices.

I agree with bonvoyage. There seem to be so many factors that have led to price increases. What makes for a tough summer ahead is that the government taxes on gas are outrageous...almost fifty cents per gallon! I think that's where the real gouging lies.

You forgot the one quote which puts the 'it gonna be a tough summer' in perspective.

Jump in the way-back machine with me.

June 28, 2000

Bush Would Use Power of Persuasion to Raise Oil SupplyBy KATHARINE Q. SEELYE

The Associated PressGov. George W. Bush said in Michigan Tuesday that he "would work with our friends in OPEC to convince them to open up the spigot."

WAYNE, Mich., June 27 -- Gov. George W. Bush of Texas said today that if he was president, he would bring down gasoline prices through sheer force of personality, by creating enough political good will with oil-producing nations that they would increase their supply of crude.

"I would work with our friends in OPEC to convince them to open up the spigot, to increase the supply," Mr. Bush, the presumptive Republican candidate for president, told reporters here today. "Use the capital that my administration will earn, with the Kuwaitis or the Saudis, and convince them to open up the spigot."

Simply put - we need a sensible energy policy put in place that will reduce our dependence on oil. We need our domestic oil companies to invest their billion dollar profits into finding ways to tap into our domestic sources as well has develop new alternative solutions.

Trusting the feds to fix this problem, be they repugs or dems, is trusting the wrong people. No administration is going to help the situation by sticking their nose in and raising taxes or fixing prices or some such.

We need more creativity and opportunity for new sources of energy and for new energy efficient products that are affordable to all. One reason it's hard to afford energy efficient products is all the taxes and regulations in place. Open things up, a la the internet and open source, and better things will follow.

I'm afraid I have to agree with squarepeg... the answer to our problems is in this type of sensible, comprehensive policy. The fact is, high prices exist because we demand so much oil, not because the companies are trying to hurt us. Plus, Katrina, OPEC, and unrest in oil countries in the Middle East and Venezuela are only making oil costs go up.

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Rachel makes good sense...the reason oil co profits are huge is because BILLIONS of people consumer HUGE amounts of their product every day. It's a matter of scale. Having said that, we need to stop blaming everyone but ourselves and start talking sensible energy policy to reduce our dependence on foreign oil.